Should Subaru offer a luxury division in the U.S.?
#1
Lexus Fanatic
Thread Starter
Should Subaru offer a luxury division in the U.S.?
Given the explosive sales-success of the Subaru Outback, Forester, and Crosstrek in the U.S. market, where they have become virtual cult-cars, I think an interesting topic for discussion would be the question of how well an upmarket division for Subaru might do in the U.S. Those who buy Subaru's mainstream products, particularly in New England, West Virginia, the Rockies, and parts of the Northwest, where they are extremely popular for snowy winters (that are also tremendously popular in the D.C. area despite our usually mild winters), come back year after year for repeat ownership. Toyota's upmarket division (Lexus) has been extremely successful here in the U.S. over the years....Infiniti and Acura, Nissan's and Honda's upmarket divisions, were at first, but then faltered some except of always-popular Acura MDX. Mazda, in the 1990s, had planned an upmarket (Amati) division, and had initially planned the Millenia sedan to be the first Amati product, but then their Ford owners axed the idea, and the Millenia was sold as a Mazda sedan along with the 929. Hyundai, of course, also introduced the Genesis upmarket division...which got off to a difficult start here in the U.S. for a few years, but is now rolling smoothly.
Subaru, on the other hand, although part of Fuji Heavy industries (now Subaru Corporation), doesn't have another auto company making their decisions for them, and, if they decided to, and had the funds for it, could launch an upscale division. Given the extreme popularity of Subaru products in the U.S.,their cult-like attraction to so many people, and the fact that their mainstream interiors are not among the best in class, often using cheap materials and simple designs, I think that doing luxo or semi-luxo versions of them (and adding more insulation to the somewhat noisy/graty boxer-engines) would bring in a sizable number of buyers, even over and above the current mainstream versions.
Saab, a number of years ago (perhaps some of you will remember it), offered the 9-2X and 9-2X Aero, which was essentially a rebadged Subaru Impreza and WRX with a upgraded interior and Saab styling touches inside and in the front end. Admittedly, it was not successful...but I maintain that the 9-2X's lack of success was not any fault of the vehicle itself, but that Saabs in general were never popular in the U.S, and that the division, like with Saturn, was horribly-managed by GM, doing it a lot of damage and setting up its ultimate sale to Spyker Corporation. Today, an upmarket Subaru division would have a new name, not associated with Saab or GM, and be off to a fresh start in the U.S.
Subaru also, at one time, in conjunction with the L.L. Bean winter-apparel company, did versions of the Outback and Forester with fancier trim and more equipment inside and out....but you could not consider them true upmarket/premium Subarus, as they were essentially the same as lower-level trim versions under the skin, and sold under the Subaru nameplate. They sold fairly well for several years, but, for some obscure reason(s), Subaru and L.L. Bean cut their ties.
Anyhow, what do you all think?
Discuss.
Subaru, on the other hand, although part of Fuji Heavy industries (now Subaru Corporation), doesn't have another auto company making their decisions for them, and, if they decided to, and had the funds for it, could launch an upscale division. Given the extreme popularity of Subaru products in the U.S.,their cult-like attraction to so many people, and the fact that their mainstream interiors are not among the best in class, often using cheap materials and simple designs, I think that doing luxo or semi-luxo versions of them (and adding more insulation to the somewhat noisy/graty boxer-engines) would bring in a sizable number of buyers, even over and above the current mainstream versions.
Saab, a number of years ago (perhaps some of you will remember it), offered the 9-2X and 9-2X Aero, which was essentially a rebadged Subaru Impreza and WRX with a upgraded interior and Saab styling touches inside and in the front end. Admittedly, it was not successful...but I maintain that the 9-2X's lack of success was not any fault of the vehicle itself, but that Saabs in general were never popular in the U.S, and that the division, like with Saturn, was horribly-managed by GM, doing it a lot of damage and setting up its ultimate sale to Spyker Corporation. Today, an upmarket Subaru division would have a new name, not associated with Saab or GM, and be off to a fresh start in the U.S.
Subaru also, at one time, in conjunction with the L.L. Bean winter-apparel company, did versions of the Outback and Forester with fancier trim and more equipment inside and out....but you could not consider them true upmarket/premium Subarus, as they were essentially the same as lower-level trim versions under the skin, and sold under the Subaru nameplate. They sold fairly well for several years, but, for some obscure reason(s), Subaru and L.L. Bean cut their ties.
Anyhow, what do you all think?
Discuss.
Last edited by mmarshall; 03-26-24 at 08:02 PM.
#3
Lead Lap
As for the question of whether I think Subaru could succeed by bringing in a luxury division here, I’m not sure this is the right time to do it given the changing automotive landscape today with hybrids and electric vehicles. So much is being sunk in to making those cars right now it would cost a ton more to start a luxury division at the same time.
#4
Lexus Test Driver
Considering Acura, Infiniti, Genesis, and Mazda to an extent have failed for the most part; Subaru should focus on what they do well.
The only Asian Luxury brand that has experienced consistent success is Lexus.
Right now automotive industry is very volatile and now is not the time for taking stupid chances. Even European brands like Jaguar, McLaren, Lotus, Aston Martin, Maserati, Alfa Romeo are all hurting for cash and on verge of being bankrupt and/or pulled from US market.
The only Asian Luxury brand that has experienced consistent success is Lexus.
Right now automotive industry is very volatile and now is not the time for taking stupid chances. Even European brands like Jaguar, McLaren, Lotus, Aston Martin, Maserati, Alfa Romeo are all hurting for cash and on verge of being bankrupt and/or pulled from US market.
#5
Lexus Test Driver
Subaru like Mazda is already such a niche brand that making an even more niche luxury spinoff would be utterly pointless, especially when like Mazda, they're a small company with very limited funds compared to global giants like VAG, Toyota, and Hyundai.
#6
Lexus Champion
There is absolutely nothing that Subaru has done that shows that there is a market for a more expensive Subaru. Top level models don't feel luxurious in any way. This would be a colossal mistake if they did it. Subaru's success has been from staying in their lane.
#7
Lexus Fanatic
Thread Starter
Many of those owners actually DO love their Subarus...it became a cult brand some time ago.
I had an Outback once....arguably the best winter vehicle I have ever owned, although it was underpowered, had a rather inflexible 4-speed automatic, and, although not a lemon, was not as mechanically reliable as I had hoped. It also did not have a switch, like on my Encore GX, that could connect/disconnect the AWD per driver-request to save gas and wear.
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#8
Lexus Test Driver
Subaru probably could charge a premium if they focused more on sports cars, but with the axing of the STI it's clear that they aren't interested.
#9
Lexus Champion
The STI is a niche performance car; luxury or near-luxury car buyers are not going to be interested in a brash car like that. Subaru power trains are not going to appeal to a customer cross shopping Lexus or Acura.
#10
Lexus Test Driver
#11
Super Moderator
This is the big kicker. Subaru's bread and butter is the boxer engine, which works very well for their niche of rugged utility. But they're coarse and not well-suited for luxury cars. So they'd have to either go the 1980s Lexus route of fully bespoke engine and platform development--which they can't remotely afford--or have the new brand be 100% EV from the get go using a shared platform that may or may not be ideal for the Luxury segment either.
#12
Lexus Champion
Saab, a number of years ago (perhaps some of you will remember it), offered the 9-2X and 9-2X Aero, which was essentially a rebadged Subaru Impreza and WRX with a upgraded interior and Saab styling touches inside and in the front end. Admittedly, it was not successful...but I maintain that the 9-2X's lack of success was not any fault of the vehicle itself, but that Saabs in general were never popular in the U.S, and that the division, like with Saturn, was horribly-managed by GM, doing it a lot of damage and setting up its ultimate sale to Spyker Corporation. Today, an upmarket Subaru division would have a new name, not associated with Saab or GM, and be off to a fresh start in the U.S.
#13
Lexus Champion
#14
Last edited by asj2024; 03-27-24 at 08:37 AM.
#15
Lexus Champion
My sister has one and keeps telling me to drive it and I haven't and don't care to. Lol. I keep my mouth shut, though.
She loves hers but doesn't have that silly sticker.
She loves hers but doesn't have that silly sticker.